The Real Housewives of New Jersey star is off the hook after a New Jersey judge dismissed her as a defendant in a mortgage fraud lawsuit.

"This is a major victory for Joe and Teresa as much has been said that's just plain wrong. This just shows how complex the truth and this case really are," Wendy Feldman, Teresa and husband Joe Giudice's legal crisis manager and sentencing expert, exclusively tells E! News.

"When clients have to stand by and remain silent to allow the process it's very hard," she continued.

"Small public victories like this are very meaningful especially when I have a case that's so unique and high profile. As we inch towards sentencing the reality of reality will become more clear. But never forget these are real people who are caught in the system. I applaud Joe and Teresa for continuing to handle this case with dignity and respect as we keep our faith in our justice system."

While this is a happy moment for Teresa, her hubby is not cleared from the case. Joe could still be on booked for punitive damages, which was filed against the couple by their former business partner, Joseph Mastropole.

And then there's the even bigger court case. Teresa could be facing 27 months in prison, while her husband Joe could get 46 months behind bars after pleading guilty to nine counts of mail, wire, bank and bankruptcy fraud in March.